What is a monopoly?

Answer 1

A company that controls an entire industry

Answer 2

When one business or company dominates its area and squeezes out all its competition, the result is the consumer does not have a free choice, and inevitably the price of it's products or services will increase, and the 'Monopoly' increases it's profit. Although, sometimes prices stay low to discourage anyone from entering the market, profit still does occur. Not to be confused with a pure monopoly, where a company has control over the entire market for a product because of barriers to entry, a monopoly doesn't exist with complete control.

However, a monopoly is a philosophical process of direct competition leading to a pure monopoly, it is not in itself a purely dominating force. It is rather, the process of obtaining competitive grounds for a strive toward total control.

The board game Monopoly is based on this concept. The idea is to buy all the property and build lots of houses and hotels, dominate the board and charge all the other players high rents... you get rich and win. The winner of the game is the one whom grasps a competitive edge.

Another type of monopoly is a government created monopoly not related to national security. In this monopoly the government gives a person or firm the exclusive right to sell a good or service. Such a case would be if a government gives a public utility the exclusive right to provide electricity. It is determined that the company can give the best product at the lowest price. The government regulates the prices through a "utility commission".

Basically there are three types, one is when a company is the sole owner of a resource, two, a government gives a single firm the exclusive right to produce a good or service and third, when the costs of production make a single producer more efficient than a large number of producers. Here are examples of each type:

1. Key resources owned by a single firm. Here we see the DeBeers diamond monopoly. This diamond producer in South Africa controls about 80% of the world's production of diamonds. Although the firm does not own 100%, it's large enough to exert substantial influence over the market price of diamonds.

2. Government created Monopolies. This types of monopolies are based on the idea that a particular monopoly is for the public good. At one point in time, the US government gave a company called Network Solutions a monopoly because it maintained a database of all .com, .net and .org internet addresses on the grounds that such data needed to be centralized and comprehensive.

2a. Patent and copyright laws are two important examples of how the government creates a monopoly to serve the public interest. It's clear that unless intellectual property needs to be encouraged, new products and ideas will shrink. While the patent may give a company a long period of time to benefit from high prices of the product, two other aspects of this need to be mentioned. The costs of say a pharmaceutical company to produce a new FDA approved drug are usually extremely high. The patent protecting the drug company serves to recover these expenses by the sale of the drug. Also, the patent encourages other drug companies to research & produce a similar product and provide competition along with the receiving a patent.

3. Natural Monopolies. An industry becomes a natural monopoly when this single firm can supply a service or good to an entire market at a lower price than can two or more other companies. At some point in time this advantage may disappear, and the "natural monopoly" no longer exists.

a company that controls an entire industry

A monopoly occurs when a business has control of the entire section of its market.

Answer 3

A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute. He enjoys the power of setting the price for his goods. ... A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute. He enjoys the power of setting the price for his goods. ...

Answer 4

An imposing business model is a market structure where a solitary dealer or maker expects a prevailing situation in an industry or an area. Syndications are deterred in unrestricted economy economies as they smother rivalry and cutoff substitutes for customers.

In the US, antitrust regulation is set up to confine syndications, guaranteeing that one business have no control over a market and utilize that control to take advantage of its clients.

Grasping an Imposing business model

A syndication is a business that is described by an absence of rivalry inside a market and inaccessible substitutes for its item. Restraining infrastructures can direct cost changes and make boundaries for contenders to enter the commercial center.

Organizations become syndications by controlling the whole store network, from creation to deals through vertical reconciliation, or purchasing contending organizations in the market through even combination, turning into the sole maker.

Sorts of Syndications

The Unadulterated Syndication

An unadulterated syndication is a solitary dealer in a market or area with high hindrances to passage, for example, huge startup costs whose item has no substitutes.

Microsoft Partnership was the main organization to stand firm on an unadulterated imposing business model foothold on PC working frameworks. Starting around 2022, its work area Windows programming actually held a piece of the pie of 75%.

Monopolistic Rivalry

Various venders in an industry area with comparative substitutes are characterized as having monopolistic rivalry. Obstructions to passage are low, and the contending organizations separate themselves through evaluating and showcasing endeavors.

Their contributions are flawed substitutes, like Visa and MasterCard. Different instances of monopolistic contest incorporate retail locations, eateries, and beauty parlors.

The Normal Syndication

A characteristic imposing business model creates in dependence on one of a kind unrefined components, innovation, or specialization. Organizations that have licenses or broad innovative work costs, for example, drug organizations are viewed as regular imposing business models.

Public Syndications

Public syndications offer fundamental types of assistance and products, for example, the utility business as only one organization generally supplies energy or water to a district. The restraining infrastructure is permitted and intensely managed by government regions and rates and rate increments are controlled.

Upsides and downsides of a Restraining infrastructure

Without rivalry, syndications can set costs and continue to cost predictable and dependable for purchasers. Imposing business models appreciate economies of scale, frequently ready to create mass amounts at lower costs per unit. Remaining solitary as an imposing business model permits an organization to put resources into development unafraid of rivalry safely.

On the other hand, an organization that overwhelms an area or industry can utilize its benefit to make counterfeit shortages, fix costs, and give bad quality items. Purchasers should believe that a syndication works morally because of restricted or inaccessible substitutes on the lookout.

Guideline of an Imposing business model.

Antitrust regulations and guidelines are set up to beat monopolistic tasks down, safeguard customers, and guarantee an open market.

In 1890, the Sherman Antitrust Demonstration was passed by the U.S. Congress to restrict "trusts," a forerunner to the syndication, or gatherings of organizations that intrigued to fix costs. This act destroyed syndications including Standard Oil Organization and the American Tobacco Organization.

Answer 5

APEX: a company that controls prices and avalability in an industry

Answer 6

a company that controls prices and availability in an industry

Answer 7

A monopoly refers to when a company and its product offerings dominate a sector or industry. Monopolies can be considered an extreme result of free-market capitalism in that absent any restriction or restraints, a single company or group becomes large enough to own all or nearly all of the market (goods, supplies, commodities, infrastructure, and assets) for a particular type of product or service. The term monopoly is often used to describe an entity that has total or near-total control of a market.

The thing is, a monopoly can develop only with government approval. Sometimes, a country's officials may decide to "protect" a specific industry either by nationalizing it (so the monopoly is government-run) or transferring the economic rights to a private business, in which case that company makes billions.

There is an interesting video on this topic. You might want to check it out.

Small Business Ideas: What’s a Business That Can Make Millions? tiny.cc/f6nysz

Answer 8

When one company is strong enough to control an entire industry

Answer 9

a company that controls prices and availability in an industry (apex)

Answer 10

When one company is strong enough to control an entire industry.